US stocks rise toward records as solid data on the job market overshadows higher oil prices

U.S. stocks climbed toward record territory Friday after a surprisingly robust jobs report showcased the resilience of the American economy despite ongoing geopolitical tensions in the Middle East.

The S&P 500 rose 0.7%, positioning itself to surpass its previous all-time high, while the tech-heavy Nasdaq composite gained 1.3%, also heading for a record close. The Dow Jones Industrial Average edged up a modest 15 points, or less than 0.1%, as of midday trading.

U.S. employers added 115,000 more jobs than they cut last month, nearly doubling economists’ expectations, even as the conflict between the United States and Iran continues to elevate fuel costs and create economic uncertainty. Though hiring slowed from March’s pace, the labor market’s strength has helped propel the S&P 500 toward its sixth consecutive week of gains—its longest winning streak since 2024.

The market rally since late March reflects investor optimism that the Middle East conflict won’t significantly damage the global economy and that the strategically vital Strait of Hormuz, a critical chokepoint for global oil shipments, will reopen to tanker traffic from the Persian Gulf.

However, tensions remain high. U.S. forces disabled two Iranian oil tankers on Friday after exchanging fire with Iranian forces in the Strait overnight. U.S. Secretary of State Marco Rubio expressed hope for “a serious offer” from Iran later in the day, following Washington’s latest proposal to end hostilities and reopen the maritime passageway.

Oil prices responded to the escalation, with Brent crude climbing 1.8% to $101.80 per barrel. While substantially higher than pre-conflict levels of around $70, current prices remain below the war-time peak of $119 seen earlier in the conflict.

Corporate earnings have provided another crucial pillar of support for the market. Monster Beverage shares jumped 14.5% after the energy drink maker reported quarterly profits and revenue that exceeded analyst expectations, driven by robust international growth. The company noted that sales outside the United States now comprise about 45% of its total revenue—the highest percentage in its history.

Akamai Technologies surged even more dramatically, climbing 20.4% after narrowly beating expectations and announcing a $1.8 billion cloud infrastructure services deal with an unnamed client spanning seven years. The cybersecurity and cloud computing firm has benefited significantly from the ongoing investment boom in artificial intelligence technology.

Not all AI-related stocks fared as well, however. CoreWeave, which provides AI computing power through cloud services, tumbled 13.1% despite reporting year-over-year revenue that more than doubled. Investors were disappointed by a wider-than-expected net loss and forward revenue guidance that fell short of analyst projections.

In global markets, European and Asian indices mostly declined, with Germany’s DAX dropping 1.4% and Hong Kong’s Hang Seng falling 0.9%. South Korea’s Kospi bucked the trend, inching up 0.1% to set another all-time high.

Bond yields eased after a University of Michigan survey revealed consumer sentiment remains near its lowest levels since 2022, with respondents expressing concerns about high gasoline prices and tariffs, though their inflation expectations moderated slightly. The benchmark 10-year Treasury yield declined to 4.36% from 4.41% the previous day and 4.45% earlier in the week.

Lower yields typically benefit both consumers and investors, as they can reduce borrowing costs for mortgages and other loans while supporting higher stock valuations. Nevertheless, the current 10-year yield remains significantly elevated from its 3.97% level before the outbreak of hostilities in the Middle East.

As markets navigate through geopolitical uncertainties, strong corporate performance and labor market resilience continue to provide a counterbalance, sustaining the ongoing rally in U.S. equities despite elevated global tensions.